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A new perspective on Kesten's school choice with consent idea

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  • Tang, Qianfeng
  • Yu, Jingsheng

Abstract

We revisit the school choice problem with consent proposed by Kesten [12], which seeks to improve the efficiency of the student-optimal deferred acceptance algorithm (DA) by obtaining students' consent to give up their priorities. We observe that for students to consent, we should use their consent only when their assignments are Pareto unimprovable. Inspired by this perspective, we propose a new algorithm which iteratively reruns DA after removing students who have been matched with underdemanded schools, together with their assignments. While this algorithm is outcome equivalent to Kesten's EADAM, it is more accessible to practitioners due to its computational simplicity and transparency on consenting incentives. We also adapt this algorithm for school choice problems with weak priorities to simplify the stable improvement cycles algorithm proposed by Erdil and Ergin [8].

Suggested Citation

  • Tang, Qianfeng & Yu, Jingsheng, 2014. "A new perspective on Kesten's school choice with consent idea," Journal of Economic Theory, Elsevier, vol. 154(C), pages 543-561.
  • Handle: RePEc:eee:jetheo:v:154:y:2014:i:c:p:543-561
    DOI: 10.1016/j.jet.2014.10.002
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    References listed on IDEAS

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    1. Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
    2. Haluk I. Ergin, 2002. "Efficient Resource Allocation on the Basis of Priorities," Econometrica, Econometric Society, vol. 70(6), pages 2489-2497, November.
    3. Erdil, Aytek, 2014. "Strategy-proof stochastic assignment," Journal of Economic Theory, Elsevier, vol. 151(C), pages 146-162.
    4. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match," NBER Working Papers 14864, National Bureau of Economic Research, Inc.
    5. Fuhito Kojima & Mihai Manea, 2010. "Axioms for Deferred Acceptance," Econometrica, Econometric Society, vol. 78(2), pages 633-653, March.
    6. Aytek Erdil, 2013. "Strategy-Proof Stochastic Assignment," Cambridge Working Papers in Economics 1333, Faculty of Economics, University of Cambridge.
    7. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-1978, December.
    8. Kesten, Onur, 2006. "On two competing mechanisms for priority-based allocation problems," Journal of Economic Theory, Elsevier, vol. 127(1), pages 155-171, March.
    9. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
    10. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-689, June.
    11. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
    12. Onur Kesten, 2010. "School Choice with Consent," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 1297-1348.
    13. Bando, Keisuke, 2014. "On the existence of a strictly strong Nash equilibrium under the student-optimal deferred acceptance algorithm," Games and Economic Behavior, Elsevier, vol. 87(C), pages 269-287.
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    Cited by:

    1. repec:spr:sochwe:v:49:y:2017:i:2:d:10.1007_s00355-017-1060-x is not listed on IDEAS
    2. José Alcalde & Antonio Romero-Medina, 2017. "Fair student placement," Theory and Decision, Springer, vol. 83(2), pages 293-307, August.
    3. Keisuke Bando & Kenzo Imamura, 2016. "A necessary and sufficient condition for weak Maskin monotonicity in an allocation problem with indivisible goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 589-606, October.

    More about this item

    Keywords

    School choice; Deferred acceptance algorithm; Pareto efficiency; Matching;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • I20 - Health, Education, and Welfare - - Education - - - General

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